Insurance can be an important part of long term financial planning. However, before you buy insurance products, there are many types of considerations you should take into account. For example, what type of insurance product is appropriate for your personal situation, or how much should you spend on a particular policy?
In the following three videos, you will get perspectives from industry veterans on different questions:
- Brian Vendig – President and Managing Executive of MJP Associates
- Tom Geraghty – Partner and Senior Wealth Manager with Stonegate Wealth Management
- Brian Kuhn – Manager of PSG Clarity
(Can’t watch the videos? Check out the full transcripts below!)
4 Things To Consider Before Getting Insurance – Brian Vendig
So, I think there’s a couple of things we’ve got to keep in mind when we look at insurance products. The first is where you are in your life cycle, and what is the solution of risk that you are trying to mitigate. What’s our affordability, what can we afford. Next, what is the quality of the insurance carrier that we are looking at to make sure they can provide adequate coverage.
And, I think finally, also consider the flexibility of the product that we might be looking at to see if it can accomplish more than one goal. The over arching point of looking at all of those things is to try to make sure that that insurance product is well correlated or is aligned to all the other pieces that you have within your portfolio from that longer term wealth planning approach.
Why Long Term Health Insurance Is Important – Tom Geraghty
A misconception that people have is that Medicare will cover long-term care needs. Obviously, the fear of running out of money is on everybody’s mind. Long-term care can certainly help a family run out of money. It’s very important to understand what long-term care looks like today.
In years past, you could perhaps buy a permanent policy, a lifetime policy. The underwriting has tightened up. You have to pass underwriting now as opposed to in the future when you’re on claim.
There’s different ways of buying long-term care insurance. You might buy a three-year term, a five-year term, a seven-year term. You may want a 90-day waiting period.
There are also some hybrids that are out there. We call them hybrids because they’re really a mixture of life insurance and a long-term care policy.
It’s important to understand what Medicare covers, what health insurance covers, what’s a long-term care policy. You really want to be talking to somebody who’s an expert in the area.
There are very few companies that actually are in the long-term care market today. There are some good products, but it’s very important that it be addressed as part of your overall financial plan.
Check out Tom’s GuideVine profile to learn more about him.
What’s the Right Amount of Life Insurance? – Brian Kuhn
Hi, my name is Brian Kuhn, Financial Planner with PSG Clarity, a division of Planning Solutions Group. Here are three things to consider when you’re talking about life insurance to protect your family.
The first is affordability. Whatever you can afford to buy would be better than having zero coverage at all, so talk about prices, and terms to get an amount you’re comfortable with.
The second item to consider is the liabilities of the household. A mortgage, a car loan, credit card debts, these are typically things a survivor would prefer to have paid off, should they be responsible for continuing with the household’s finances.
Then the last reason life insurance is typically purchased is income replacement. If the individual who unfortunately has passed away was earning a living, some numbers of years of their income could be added up to calculate how much insurance is needed.
These days though it’s a little more complicated than that. There are a variety of forms of insurance, even policies that pay out the benefit as an income stream to the survivor so they don’t have to worry about handling a lump sum. If you have questions about this topic, or you’d just like to talk, feel free to give me a call, and I look forward to it. Thanks very much.
Check out Brian’s GuideVine profile to learn more about him.
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